Consumer advocates warn against alleged new contracts with electricity and gas providers

Consumer advocates warn against alleged new contracts with electricity and gas providers

According to a report from www.rbb24.de, the Berlin consumer advice center warns against alleged new contracts for electricity and gas that can be concluded without written confirmation from the consumer. All you need is information such as name, address and energy meter number. This development allows unwanted contracts to come into being, as providers often obtain this data through unannounced home visits or telephone calls. The Berlin consumer advice center therefore advises caution and emphasizes that reputable providers would never ask for such data over the telephone. The chairwoman of the Association of Energy Consumers is calling for a reform to counteract the problem with foisted contracts and to require the customer to have a power of attorney confirming their consent when it comes to changing electricity providers.

From an economic perspective, the increasing number of foisted contracts can lead to consumer uncertainty. This can lead to consumers being less likely to decide to change their electricity provider. This could impair competition in the market and lead to an increase in electricity prices. In addition, reputable electricity and gas providers could suffer image damage, which could have long-term effects on their business activities.

The federal government should therefore consider changing the law as soon as possible in order to ensure consumer safety and prevent abuse through unwanted contracts.